Ex-Investment Adviser Allen Pleads Guilty to Insider Trading

Ex-Investment Adviser Allen Pleads Guilty to Insider Trading
News from BusinessWeek:

Scott Allen, a former Mercer LLC investment adviser, pleaded guilty to charges that he supplied nonpublic information to a friend in a $ 2.6 million insider- trading scheme involving drug-company acquisitions.

Allen, 45, of Atlanta, admitted in federal court in Manhattan today that he shared illegal tips about the April 2008 acquisition of Millennium Pharmaceuticals Inc. (MLNM) by Takeda Pharmaceutical Co. (4502) and about the 2009 purchase of Sepracor Inc. by Dainippon Sumitomo Pharma Co. (4506)

“I had discussions with a personal friend and shared that information with him and he in turn traded on that information,” Allen told U.S. District Judge Deborah Batts. “The motive behind my decision was primarily friendship but also for financial gain.”

Allen pleaded guilty to seven counts of securities fraud and a charge of conspiracy to commit securities fraud. His trial was set to begin March 27 before Batts. He said today in court that he betrayed his fiduciary duty to his employers by passing the tips to his friend, John Bennett, an independent film producer. Bennett pleaded guilty to insider trading charges in November.

Charles Salmans, a spokesman for Mercer, said his firm “is fully cooperating with the authorities in their investigation matter concerning a former employee. Mercer is not a subject or target of the investigatio…………… continues on BusinessWeek

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ETF Chart of the Day: Treasury Inflation-Protected Securities (TIPS)
News from ETF Trends:

Bond ETFs News:

  • A Bearish Signal in Muni Bond ETFs?
  • Gross Says PIMCO ETF Not Afraid of Copycats
  • ETF Chart of the Day: U.S. Treasury Bonds

Last week’s steep sell-off in U.S. Treasury bonds as well as some other slices of the fixed income market including Investment Grade Corporates sparked some renewed interest in Treasury Inflation Protected Securities, or TIPS, products in
the ETF space.

The iShares Barclays TIPS Bond (NYSEArca: TIP) remains the giant in the space, having amassed more than $ 22 billion in assets under management since its inception in 2003.

The fund invests in investment grade TIPS bonds that have at least one year remaining to maturity, and $ 250 million or greater in outstanding face value.

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